# Royalties. Redesigned. By [Omnisea](https://paragraph.com/@omnisea) · 2023-02-28 --- Today, we’re glad to share and discuss our idea for the completely new Royalties protocol that we intend to embed into our upcoming NFT Trading solution. Note, that this article is not about the trading product itself, for that we plan to reveal all in the near future. This time, we’d like to announce how Omnisea aims to solve the ongoing and never-ending Royalties issue. ### Key features of our Royalties protocol * **On-chain. Embedded directly into the upcoming Omnisea Trading protocol.** * The collection’s Creator (owner) can set the royalties percentage via the on-chain function. * Royalties are spread **50/50 between Creator and the collection’s Holders!** * The system is very sustainable as the income comes directly from trading. Holders don’t need to do anything besides claiming earned rewards (Holders Royalties). * **Holders’ Royalties are split equally between each Token ID**. If you sell NFT without claiming before your royalties, the new token owner is entitled to claim the amount. And vice versa. ### Important “psychological” side-effects * Every collection (its tokens) **traded on Omnisea becomes the source of passive income for not only the Creator but also Holders** (investors). * It automatically creates utility for every NFT in the space. * It creates a stronger relationship between Creator and the Holders. First of all, Holders will be aware that their efforts to promote the collection are directly serving them too. * It increases community engagement. * On-chain enforcement guarantees clarity and transparency for Creators. As we at Omnisea believe if in this sector something is off-chain - then it’s not guaranteed and transparent. The recent decision of OpenSea and Blur to disable royalties is a perfect example of that. In their opinion, royalties are decreasing their marketplace volume and thus are negative for their businesses. Let’s not forget what brought a lot of digital artists into the NFT space. The ability to instantly and without permission share their art as well as earn from it are the significant factors why the NFT art sector has grown so much. It should always remain the Creator’s decision if she or he sets the royalties. Our system will additionally reward their Community - Holders (investors) because it’s only fair and beneficial for everyone. ### A simple example to show the potential Let’s quickly present the easy scenario of how powerful and simple this new Royalties Protocol is 👇 1. Collection A is trading at Omnisea and counts 1,000 items. 2. Its Creator sets the on-chain royalties as 5%. 3. The total trading volume (after some time) of this collection reaches 10,000 ETH. 4. 250 ETH are going to the Creator and 250 ETH are going to the Holders. 5. You own 2 tokens from this collection. **You’re eligible to claim 0.5 ETH.** It’s just an example. If the collection would count 5,000 items you’d be eligible to claim 0.1 ETH (0.05 per token). What’s additionally exciting, is that our protocol can generate a passive income for Holders that didn’t even know about Omnisea. In the case of our platform’s growth and their collections’ significant trading volume, they can just realize that they can claim the royalties rewards. ### Discussion? How do you like our idea? Would you change something or do you fundamentally disagree with the concept? If you’re a Creator or Collector, what do you think about it? Let us know in the Twitter comments or via Discord 💡 --- *Originally published on [Omnisea](https://paragraph.com/@omnisea/royalties-redesigned)*